In the latest trading session, Snap (SNAP) closed at $11.04, marking a -0.09% move from the previous day. This change was narrower than the S&P 500’s 0.76% loss on the day. On the other hand, the Dow registered a loss of 0.75%, and the technology-centric Nasdaq decreased by 1.01%.
Coming into today, shares of the company behind Snapchat had gained 14.63% in the past month. In that same time, the Computer and Technology sector gained 5.51%, while the S&P 500 gained 4.31%.
The investment community will be closely monitoring the performance of Snap in its forthcoming earnings report. The company is scheduled to release its earnings on October 29, 2024. The company is expected to report EPS of $0.05, up 150% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.35 billion, up 13.98% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $0.21 per share and a revenue of $5.35 billion, demonstrating changes of +133.33% and +16.08%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Snap. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.7% increase. Snap is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, Snap is currently trading at a Forward P/E ratio of 52. This valuation marks a premium compared to its industry’s average Forward P/E of 31.73.
The Internet – Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 78, positioning it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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